March 2019

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There is a sudden rise in number of orders received by textile mills in China during the last one month.

About a month ago, textile mills in Fóshan, a city in central Guangdong province in southern China, were operating at less than 50 percent capacity. However, the operating rate has now gone up to more than 80 percent.

About half of export orders are bagged by large textile mills which make finished products from raw materials like cotton yarn, while the remaining 50 percent of orders were received by merchants who export finished goods after getting them produced in small textile mills.

The increase in operating rate can also be attributed to an extent to an increase in high-quality orders.

In recent times, several orders from China had shifted to countries like India and Pakistan owing to a wide price gap of 3,000-5,000 yuan/ton in prices of domestic and imported cotton.

However, the quality of textile products produced in other Asian countries fails to match Chinese standards and hence, some foreign buyers have again opted to place orders with Chinese firms.

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